The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below. Accounts Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation Accounts Payable Salaries Payable Interest Payable Notes Payable (due in two years) Common stock Retained Earnings Service Revenue salaries Expense Rent Expense Depreciation Expense Interest Expense Totals $ Debit 12,000 150,000 6,000 30,000 400,000 400,000 20,000 40,000 5,000 $1,063,000 Credit $ 135,000 12,000 11,000 5,000 40,000 300,000 60,000 500,000 $1,063,000 2. Prepare a statement of stockholders' equity for the year ended December 31, 2021, assuming no common stock was issued during 2021.
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Vd
Subject: accounting
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The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.
Cash
Accounts Receivable
Prepaid Rent
Supplies
Equipment
Accumulated Depreciation
Accounts
Accounts Payable
salaries Payable
Interest Payable
Notes Payable (due in two years)
Common Stock
Retained Earnings
Service Revenue
salaries Expense
Rent Expense
Depreciation Expense
Interest Expense
Totals
Balance at January 1
Less: Dividends
Balance at December 31
$
Debit
Common
Stock
12,000
150,000
6,000
30,000
400,000
400,000
20,000
40,000
5,000
$1,063,000
FIGHTIN' BLUE HENS CORPORATION
Statement of Stockholders' Equity
For the Year Ended December 31, 2021
Credit
2. Prepare a statement of stockholders' equity for the year ended December 31, 2021, assuming no common stock was issued during
2021.
Retained
Earnings
$ 135,000
12,000
11,000
5,000
40,000
300,000
60,000
500,000
$1,063,000
Total
Stockholders'
Equity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2Ff13fba55-d5db-4396-af4d-8c6056bcded1%2F8i2j9xp_processed.png&w=3840&q=75)
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